The U.S. stock market experienced a sharp downturn on Friday, October 10, 2025, with all major indexes closing significantly lower and posting weekly declines. The market's calm was shattered by President Donald Trump's threats of "massive" tariffs on Chinese imports, reigniting fears of a renewed trade war and overshadowing earlier gains in the session. The tech sector bore the brunt of the sell-off, contributing heavily to the day's losses. Adding to investor unease is the ongoing U.S. government shutdown, now in its third week, which continues to delay crucial economic data releases.

Major Market Indexes Recap

Friday's trading saw a dramatic reversal from earlier optimism. The Dow Jones Industrial Average dropped 878 points, or 1.9%, ending the week down 2.7%. The benchmark S&P 500 sank 2.7%, losing 182 points, marking its worst single-day performance since April and closing the week with a 2.4% decline. The tech-heavy Nasdaq Composite tumbled 3.6%, shedding 820 points, despite having hit a fresh intraday record high earlier in the day. It concluded the week down 2.5%. The broader US500 index, tracked by a contract for difference, fell to 6579 points, a 2.31% loss from the previous session.

The sudden market plunge was primarily triggered by President Trump's social media posts, where he threatened significant tariff increases on Chinese goods. He cited China's recent export controls on rare earth elements—materials vital for manufacturing various high-tech products—as the reason for his potential action. This development immediately sparked concerns about a "Trade War 2.0," prompting a broad sell-off across global markets.

Key Stock Movements and Corporate News

Several prominent companies saw significant stock price movements today:

PepsiCo (PEP) was a notable bright spot, with its stock surging a further 3.7% on Friday. This strong performance followed its impressive Q3 results, which topped analyst estimates, and the announcement of a new CFO yesterday.

In the technology and digital infrastructure space, Applied Digital (APLD) soared 20% after the AI data center service provider reported better-than-expected first-quarter fiscal 2026 revenue, which skyrocketed 84% to $64.2 million. The company also announced new data center deals, fueling investor confidence.

Conversely, semiconductor giants experienced substantial declines. Nvidia (NVDA) shares fell more than 2%, despite reaching a new all-time high earlier in the week. AMD (AMD) saw an even steeper drop, falling between 6.6% and 7%. Qualcomm (QCOM) also declined by over 6% following news of an antitrust probe in China. Other tech heavyweights like Amazon (AMZN) and Meta (META) were down roughly 3%, contributing to the overall negative sentiment in the tech sector. The renewed trade tensions particularly impacted these companies, given their significant exposure to global supply chains and markets.

Interestingly, stocks related to rare earth elements saw a surge, as investors anticipated increased demand or strategic importance in light of the escalating U.S.-China trade dispute.

Meanwhile, Levi Strauss (LEVI) plunged between 7% and 12.6% despite reporting stronger-than-expected quarterly results and raising its annual outlook. Analysts suggest this significant drop might be due to heightened market expectations following a strong run for the stock year-to-date.

Upcoming Market Events and Economic Outlook

The ongoing U.S. government shutdown, now in its third week, continues to be a major source of uncertainty for markets. It has led to delays in the release of critical economic data, including the Consumer Price Index (CPI), Producer Price Index (PPI), retail sales, and jobs reports. While the Bureau of Labor Statistics is reportedly recalling staff to prepare the monthly CPI report, its release is now expected on Friday, October 24, instead of next week.

Despite these delays, some economic indicators were released today. The University of Michigan's preliminary October Consumer Sentiment index dipped slightly to 55.0 from 55.1 in September. This marks the third consecutive monthly decline and reflects persistent consumer worries about a stalling job market and stubbornly high inflation.

Looking ahead, the third-quarter earnings season is set to kick off in earnest next week. Major banks will lead the announcements, with JPMorgan Chase (JPM), Citigroup (C), Wells Fargo (WFC), Goldman Sachs Group Inc (GS), Bank of America Corp (BAC), and Morgan Stanley (MS) all scheduled to report results. Other key companies expected to release quarterly updates include BlackRock (BLK), Johnson & Johnson (JNJ), American Express (AXP), Abbott Laboratories (ABT), Progressive (PGR), and Charles Schwab (SCHW). These reports will offer crucial insights into corporate performance amidst the current economic climate and trade tensions.

Several Federal Reserve officials, including Chair Powell, are also scheduled to speak next week, and their comments will be closely watched for any indications regarding future monetary policy. The minutes from September's FOMC meeting, released on Wednesday, October 8, provided details on the discussions behind the first interest rate cut of 2025.

In terms of specific earnings announcements after today's market close, no major companies reported immediately. However, several firms have announced their upcoming Q3 2025 earnings release dates. LendingTree, Inc. (TREE) will release its results after market close on Thursday, October 30, 2025. Ingersoll Rand Inc. (IR) is also slated to issue its Q3 2025 earnings after market close on Thursday, October 30, 2025. Orion Properties Inc. (ONL) will announce its Q3 2025 operating results after market close on Thursday, November 6, 2025.

On the international front, several industry-specific events are scheduled for October. These include MIPCOM CANNES, a global content market (October 13-16, 2025), the Business Travel Show America in New York City (October 15-16, 2025), CREtech New York, a real estate innovation conference (October 21-22, 2025), and the High Point Market for the home furnishings industry (October 25-29, 2025). These events, while not directly impacting the broad market indexes, can influence specific sectors and investor sentiment.